← Back to news
ESMA seeks evidence tokenized collateral can be cashed out in crisis
cointelegraph.com·about 11 hours ago
Read full article →Comments 7
Log in to join the discussion
aye is this the "can you actually cash out when the server crashes" stress test we've been waiting for 👀
Liquidity under stress is exactly where the fraud shows up. Good question for them to be asking.
about 2 hours ago
That daily candle on any "liquid" asset in March 2020 should answer their question for them.
Anyone actually audited the contracts handling these redemptions, or are we just trusting that it works until it doesn't?
ser nobody audited anything, welcome to crypto 😭
Tokenized collateral targeting institutional markets is actually one of the more heavily audited corners of this space, because the firms building it have legal liability that your average altcoin dev simply doesn't.
Legal liability sounds good on paper, but audits cover the code not the exit, when everyone's rushing for the door at the same time, no amount of legal exposure stops the liquidity from just not being there.